Client Situation
Our client is a well-known television manufacturing and marketing organization in India. The television business attempted to articulate its strategic objectives, prioritize initiatives, and deploy its strategy in a very competitive marketplace. The client wanted to choose a suitable performance measure and align the overall performance measurement and management system by creating individual KRAs (key result areas) in line with the enterprise performance measures.
Cedar’s Approach
The client required Cedar’s assistance in articulating and validating strategic objectives for the television business and the development of an Enterprise Performance Measurement System. Cedar utilized the Balanced Scorecard to help identify key objectives, measures, and initiatives and build the roadmap for deployment of an integrated strategy. Cedar’s approach was as follows:
- Review of all relevant internal documents related to the strategy and operations of the enterprises at the Group and Individual Company levels
- One-on-one interviews with relevant members across the client’s teams (49 personnel) to articulate their interpretation of the vision, the financials, customer, internal process, and organizational objectives of the enterprise, their concerns vis-à-vis the strengths and weaknesses of the organization, etc
- One-on-one interviews with industry dealers in order to understand their perspective (14 dealers)
- Integration of the internal assessment and one-on-one interview inputs to develop a summarized analysis of the issues/objectives of the group and the divisions
- Development of the Balanced Scorecard
Outcome
Some of the key outcomes of this program were as follows:
- Identification of 23 critical financial, customer, internal, and learning and growth strategic objectives such as:
- Generation of new revenues through export in select new markets, the service business, and contract manufacturing
- Aggressive cost reduction in materials, workforce, overheads and assets
- Re-engineering of enterprise-wide key business processes
- Development of manufacturing flexibility, including outsourcing, design standardization, and cost-effective sourcing
- Complete implementation of SAP and significant improvement of the Management Information System (MIS)
- Identification of 36 work-in-progress and 39 new strategic projects to be undertaken to fulfil each of the 23 identified objectives across the financial, customer, internal process, and learning and growth perspectives
- Filtration and collation of identified strategic projects to determine 28 crucial strategic projects to be undertaken
- Project alignment with strategic objectives and project prioritization based on business criticality and implementation efforts
- Identification of measures templates for each of the 23 strategic objectives, comprising the unit of measurement, measurement intent, formulae for calculation, assumptions made, objective ownership & accountability for reporting and frequency of updates